Exclusive Networks bids to be €1bn business
Exclusive Networks Group has outlined a strategy of organic growth and further acquisition in a bid to become a €1bn business by 2017.
The self-styled ‘SuperVAD’ announced its plans off the back of its latest financial results, which saw the firm post revenues of €279m – up 24 percent from €214m in 2011.
Headquartered in France, the Group operates in 14 countries and offers its services to more than 4,200 resellers. The firm has positioned itself as an innovator in the tech sector, claiming there’s no other distributor that champions emerging technologies on a pan-European scale.
CEO of Exclusive Networks Group, Olivier Breittmayer (pictured), said the firm is now looking to sustain a long-term 15-20 percent annual growth rate.
To make this happen, Breittmayer says the Group is aiming to conduct three acquisitions a year, fuelled by a recent round of funding from lead investor Omnes Capital. Acquisitions will be based on establishing a presence in specific countries, growing market share in certain markets, and lastly, adding new technologies to its portfolio of networking and security solutions – namely datacentre and storage, mobility and unified communications.
The UK – which constitutes the largest part of the Group’s European business with a 34 percent share – saw a 24 percent increase in revenues in 2012.
Exclusive’s acquisition of VADition eighteen months ago is at the heart of its UK business, building on the firm’s heritage of bringing new tech to market. Barrie Desmond, director of marketing & global accounts at Exclusive Networks Group, describes the firm as “contrary” to the current distribution landscape, with the business specialising in “high value services wrapped around disruptive technologies.”
Desmond believes there’s nobody else doing this. “Computerlinks [used to do similar things] but they’ve drifted, they’ve become too dependent on their legacy vendors,” he comments. “They’ve got the reach and volume, but not the margin.
“We’re walking the walk,” he adds.
The VADition deal in 2011 saw its co-founders, Neil Ledger and Ian Morris, take shares in Exclusive UK. At the time, Breittmayer said “It is much more a partnership and they are a big shareholder now of Exclusive UK; it is really them that will continue to develop the business.”
The CEO claims that allowing individual markets to have the power to make decisions locally is a key to success. Describing the country-led operations as “nationally focused, independent, and entrepreneurially-led business units”, Breittmayer believes the model is “the right one for the modern European marketplace.”